topic 7

Question 1

Advertising Standards Authority (ASA)

Answer 1

The UK’s independent regulator of advertising across all media

Question 2

Brand awareness

Answer 2

Recognition of a brand’s products and qualities by current and potential customers

Question 3

Consolidation loan

Answer 3

A loan used to pay off a number of different debts, meaning that there is only one payment to make each month, to the loan company

Question 4

Corporate social responsibility (CSR)

Answer 4

Any action or project in which a company goes beyond the interests of its shareholders and senior management in order to benefit other stakeholder groups, normally with either a social or an environmental purpose. Also known as citizenship or sustainable responsible business

Question 5

Economic climate

Answer 5

he state of the economy at a given time – in a good economic climate people are more inclined to spend money and invest; in a poor climate they are less likely to do so

Question 6

Gross domestic product (GDP)

Answer 6

The total value of goods produced and services provided in a country during one year

Question 7

Market segmentation

Answer 7

Splitting up the whole market into smaller segments within which customers share particular features, eg income, age, lifestyle

Question 8

Market segments

Answer 8

Groups of customers sharing distinct features in terms of, for example, age, income or lifestyle

Question 9

Mass market

Answer 9

A broad consumer group that includes a wide range of customers with different age, gender and income profiles

Question 10

Promotion

Answer 10

Paid-for marketing activities, including advertising. It includes all activities that aim to communicate with people, inform them of goods and services, and persuade them to buy

Question 11

Retail ring-fencing

Answer 11

Separating the deposit-taking part of a bank or building society from the rest of its business so that, in the event of financial difficulties, the ring-fenced deposits of retail customers cannot be used to pay the debts of the more risky investment section of the bank.

Question 12

An effective marketing campaign for a building society would result in customers:

Answer 12

placing large deposits for a long period of time

Question 13

Targeting particular groups of customers is known as market:

Answer 13

segmentation

Question 14

The most useful type of segmentation for financial services providers is one that defines people by their

Answer 14

product-buying behaviour

Question 15

The FCA rules that apply to advertising on the internet are

Answer 15

as strict as those for other forms of advertising

Question 16

The ‘Crystal Mark’ is awarded by the

Answer 16

Plain English Campaign

Question 17

Firms operating under conditions of oligopoly tend not to compete on

Answer 17

price

Question 18

he most expensive of the following three advertising media is

Answer 18

television

Question 19

Credit unions tend to advertise:

Answer 19

locally

Question 20

Which of the following organisations emphasises its mutuality in its advertising?

Answer 20

Nationwide

Question 21

The advertising industry is policed by

Answer 21

the Advertising Standards Authority

Question 22

‘Small print’ in a contract describes the legal terms and conditions and the technical details

Answer 22

true

Question 23

Most financial services providers are mutuals.

Answer 23

false

Question 24

Whether the campaign has resulted in an increase in knowledge about a particular product is

Answer 24

Efficiency

Question 25

Whether the campaign has resulted in an increase in knowledge about a particular product is

Answer 25

Efficiency

Question 26

The accuracy of the information given out, including whether it is correct or not is

Answer 26

Quality

Question 27

Whether the marketing corresponds to what people would expect from the provider is

Answer 27

Consistency

Question 28

The extent to which the language used is understood by the target audience is

Answer 28

Appropriateness